Aluminum giant Alcoa is splitting itself in 2

The aluminum giant Alcoa is splitting itself into two public
companies: Upstream Company and Value-Add Company.

The names of the companies speak for themselves. Upstream Co.
will be involved in getting the stuff out of the ground.
Value-Add Co. will be engaged in downstream-type operations,
turning that stuff into a workable product for its customers.

"The globally competitive Upstream Company will comprise five
strong business units that today make up Global Primary Products
— Bauxite, Alumina, Aluminum, Casting, and Energy," management
said. "The innovation and technology-driven Value-Add Company
will include Global Rolled Products, Engineered Products and
Solutions, and Transportation and Construction Solutions."

Management expects the action to be completed in the second half
of 2016.

"In the last few years, we have successfully transformed Alcoa to
create two strong value engines that are now ready to pursue
their own distinctive strategic directions," CEO Klaus Kleinfeld
said. "After steering the Company through the deep downturn of
2008, we immediately went to work reshaping the portfolio."

"We have repositioned the upstream business; we have an enviable
bauxite position and are unrivalled in Alumina, we have optimized
Aluminum, flexed our energy assets, and turned our casthouses
into a commercial success story," Kleinfeld continued.

"The upstream business is now built to win throughout the cycle.
Our multi-material value-add business is a leader in attractive
growth markets. We have intensified innovation, made successful
acquisitions, shed businesses without product differentiation,
invested in smart organic growth, expanded our multi-materials
profile and brought key technologies to market; all while
significantly increasing profitability."